Inside Walmart's plan to source more products from American small businesses
Walmart is taking steps to source more products from U.S.-based small business suppliers as the world's largest retailer tries to keep prices low.
Why it matters: Walmart recently confirmed plans to raise some prices as it grapples with the impact of increased tariffs, drawing the ire of President Trump.
The big picture: Walmart U.S. CEO John Furner tells Axios in an exclusive interview that the company wants to give more small American businesses a chance to sell goods at the company, which already devotes about two-thirds of its product spend to goods that are made, grown or assembled in the U.S.
"It's always helpful when you have the shortest supply chain possible," Furner says.
Zoom in: Walmart now has more than half a billion items for sale online, Furner said.
And the company expects to offer three-hour delivery to 95% of the country by the end of 2025, up from 90% today, he added.
The intrigue: Despite the impact of tariffs, Furner said Walmart is not experiencing significant cost increases.
"We're at a point today where inflation is relatively low," he said.
"What we're trying to do is keep prices as low as we can, as long as we can, to not have our customers in a position where they feel like their food bills or basic essentials are starting to rise again," he added.
Inside the room: At a Walmart reception Wednesday in Washington, D.C., several small to mid-size business owners told Axios they are growing their operations after reaching deals to sell products with the retailer.
David Sarnoff, president of Handi-foil, tells Axios his company is adding jobs at its facilities in Illinois to accommodate for growth from sales of its cooking pans at Walmart.
Brian Waddick, founder of sunflower seeds brand Smackin', tells Axios his startup expects to "double or triple" in size in the next 18 months as it launches sales in hundreds of Walmart locations: "We want to be the Gen Z PepsiCo," he says.
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